Belgian media tycoon buys major Dutch newspapers

The Belgian media company Persgroep Publishing is set to acquire a majority stake in the Dutch media group PCM Uitgevers, publishers of NRC Handelsblad, de Volkskrant and Trouw.

Persgroep Publishing has agreed to pay 100 million euros for 51 percent of the shares in PCM, both companies announced on Tuesday.

The capital increase will be used in large part to reduce PCM's debt. The withdrawal of Britain's private equity fund Apax in 2007 left PCM with 120 million euros in debt with twelve banks. The current economic downturn has worsened the company's position.

In Belgium, the Persgroep publishes the popular daily newspaper Het Laatste Nieuws, the smaller De Morgen and the financial newspapers De Tijd and L'Echo. It also has a 50 percent share in the Flemish commercial TV station VTM.

In 2005, the Persgroep acquired the ailing Amsterdam daily newspaper Het Parool and has since made it profitable again.

Under the deal announced on Tuesday, Persgroep acquires all of PCM's newspaper titles: de Volkskrant, NRC Handelsblad, Trouw as well as PCM's majority share in AD. Six book publishers are also part of the deal, which is expected to be finalised by May.

PCM is currently owned by non-commercial foundations that were established to safeguard the diversity of the Dutch press.

It is expected that the Persgroep's CEO Christian Van Thillo will try to sell off one of PCM's two main quality newspapers, NRC Handelsblad or the Volkskrant, as soon as possible. Van Thillo made it known during the negotiations that he thinks having two competing titles within the same media group is bad strategy. Both newspapers have expressed interest in leaving PCM.

PCM will continue to exist as a Dutch legal entity. At a later stage, Persgroep's existing Dutch activities, Het Parool and radio station Q Music, should be integrated into PCM Uitgevers.